Food companies are under pressure to reformulate their products and move away from artificial dyes and ingredients. This push comes as Health and Human Services Secretary Robert F. Kennedy Jr. demands the food industry to phase out the use of artificial dyes by 2027. Consumers are increasingly seeking healthier foods with clean-label ingredients, driving the demand for reformulation in the industry.
Ingredients suppliers have reported a significant increase in sales due to this demand. Monish Patolawala, CFO of Archer-Daniels-Midland Co., mentioned at a conference in New York that there is already a high demand from customers to reformulate their products. Beverage producers, in particular, are seeking natural flavors, leading to a 13% increase in operating revenue for ADM’s nutrition segment in the first quarter.
Ingredion’s texture and healthful solutions unit also reported a 34% increase in operating income driven by the demand for clean-label solutions. McCormick, a spice giant, has observed reformulation activity across its customer base in response to the demands for natural ingredients and improved nutritional profiles.
Several food giants have announced their plans to transition to natural dyes. Tyson Foods is proactively reformulating products containing petroleum-based dyes, while PepsiCo aims to move its portfolio to natural colors within the next few years. Brands like Lays will have artificial colors removed by the end of the year as part of this transition.
PepsiCo’s CEO, Ramon Laguarta, emphasized the importance of meeting consumer demand for natural ingredients and accelerating the transition in a pragmatic and organized manner. The industry is working towards this shift to natural ingredients to meet the growing consumer preference for healthier and cleaner food options.
